Folksam increases holding in SSAB to support company’s transition to fossil free steel production

Written by Adam Cadle

21/06/2021

Folksam has increased its ownership in steel company SSAB, corresponding to 5.2% of the voting rights and 2.1% of the share capital.

The additional investment was primarily made to take a more active role in supporting the company’s transition to fossil free steel production, while it at the same time is considered to have the potential to generate long-term attractive returns to Folksam’s clients.

“Fossil free steel production will be one of the key elements of a successful climate transition, both in Sweden and globally,” Folksam Group CEO Ylva Wessén stated. “At the same time, SSAB’s ongoing transformation is important to ensure that industrial jobs stay in Sweden. We have been shareholders in SSAB for many years and are now ready to take a more long-term responsibility for the company’s climate transition efforts.”

Folksam has more than SEK 500bn in asset under management. Its long-term climate target is to transition its investment portfolios to net zero greenhouse gas emissions by 2050, at the latest. To achieve this, Folksam plans to engage with high carbon portfolio companies on their decarbonisation pathways.

“We are convinced that we can make a more substantial contribution by supporting large emitters in their transition efforts, rather than excluding them from our portfolios. Through our increased ownership in SSAB, we have an opportunity to make a real impact in a company that today represents 10% and 7% of the emissions in Sweden and Finland”, respectively,” Wessén added.

In recent years, Folksam has made several investments aiming to support climate transition, including investments in green bonds, Northvolt and Volvo Cars.

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